Canadian Software Maker Kinaxis Plans IPO In Coming Weeks — Sources

Ben Dummett broke the news on April 24 that Kinaxis Inc. planned to launch an IPO to raise more than C$100 million and list its shares on Canada’ flagship Toronto Stock Exchange, which would be the first tech IPO since November 2013.

The story as it appeared on Dow Jones:
April 24, 2014, 12:01 PM EDT– Canadian Software Maker Kinaxis Plans IPO In Coming Weeks — Sources

TORONTO–Canadian software company Kinaxis is preparing an initial public offering, according to people familiar with the matter, signaling a resurgence in Canada’s IPO market and coming as a boost for investors in the country’s technology sector.

The proposed offering could raise more than 100 million Canadian dollars ($90.6 million), these people said. Kinaxis, which is based in Ottawa and has offices in the U.S., Europe, Japan, and Hong Kong, develops software products that companies use to more effectively manage their supply chains.

The company is expected to launch its IPO in the coming weeks and list its shares on Canada’s flagship Toronto Stock Exchange, according to these people.

A Kinaxis spokeswoman couldn’t immediately be reached for comment.

If the offering proceeds as expected, it would represent the first technology IPO on the Toronto exchange since November 2013, when Baylin Technologies Inc., a maker of antennas used for broadband devices and wireless networks, raised C$50 million.

The planned offering comes at a time when the Canadian IPO market is heating up across different sectors after a slump in the first quarter. Earlier this month, Lumenpulse Inc., a Montreal-based maker of energy efficient light fixtures, raised C$115 million when it went public, and has since seen its stock jump almost 22% from its IPO price of C$16.

Also this month, Callidus Capital Corp., a Toronto-based lender, raised C$252 million from its IPO. Its stock is up 21% since it listed.

TMX Group Ltd., operator of the Toronto Stock Exchange, aggressively courts technology IPOs to diversify its listings, which are dominated by resource and financial issues. It considers Lumenpulse a clean-tech company, but followers of the Canadian IPO market have lamented the recent lack of technology IPOs, particularly given strong demand for growth stocks in the U.S. new-issue market earlier this year.

A successful Kinaxis offering would signal the tide is changing in Canada.

Investors sometimes shy away from technology IPOs because the companies often come to market without a track record of making profits. Kinaxis, however, shouldn’t face that problem. The company said on its website that its origins date back to 1984, and that it has had double-digit revenue growth and has been profitable for more than seven years.

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